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Administrative Law Keyed to Koch
Ford Motor Company v. Federal Trade Commission
Citation:
673 F.2d 1008 (1981)Facts
Francis Ford, Inc., an Oregon automobile dealership, had a practice in repossessing cars whereby it would credit the debtor for the wholesale value of the repossessed car, charge the debtor for both direct expenses (refurbishing) and indirect expenses (overhead and lost profits) associated with repossession and resale, and then sell the repossessed vehicle at retail while keeping any “surplus.” The FTC initiated an adjudicatory action against Ford Motor Co., Ford Credit Co., and Francis Ford, Inc., alleging these practices violated § 5 of the FTC Act. The FTC was simultaneously conducting a rulemaking proceeding addressing similar credit practices. After all respondents except Francis Ford settled with the FTC, an administrative law judge found Francis Ford’s practices violated the FTC Act. The full commission affirmed and ordered Francis Ford to adopt the FTC’s interpretation of UCC § 9-504, which would require crediting debtors with the “best possible” value and prohibit charging for overhead and lost profits.
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